The Downtown Billings Partnership (DBP) Board of Directors recommends the City Council approve a Sign Incentive Program using $30,000 in Downtown Urban Renewal tax increment finance district funds. If approved, the program will be funded for the FY21 budget cycle and would be evaluated every six months by the DBP Board to determine whether the program and allocation amount are meeting the needs of the Downtown Urban Renewal District.

The City Council at its July 13 Regular Meeting directed Downtown Billings Partnership staff and City staff to bring a Sign Incentive Program for the Downtown Urban Renewal District back to the Council for action. The Council on July 13 approved a single Sign Incentive Application for Bethany Joy Pilates for its new sign installation at 2202 1st Avenue North. However, the Council recommended it approve a program so that applicants could apply and be approved for signage enhancements through the DBP without bringing every individual application to the Council for action.

The DBP made a recommendation at its meeting on August 28 to allocated $30,000 for the program which would enable up to 10 sign incentive applications to be awarded at the maximum award. Given that the first award for Bethany Joy Pilates did not need the maximum award, it is likely that the program could provide significant support to signage improvements in the Downtown District. The maximum award for an application is up to $3,000 of TIF funds at a 1:1 match for a sign project. So, a sign project totaling $4,000 could have up to $2,000 of its cost covered by the program. This same programmatic approach was taken by the City Council for the Crime Prevention Through Environmental Design (CPTED) Program it approved for the Downtown Urban Renewal District in November 2019. It allows applicants to apply for funding to do CPTED analysis and the DBP can approve these applications under the Council approved program without bringing each application to the Council for individual action.

The DBP Board has established a Sign Incentive Grant program to provide financial and practical assistance to design, fabricate, and install signage in downtown Billings, clearly identifying the location and entrance of a business, promoting the service or merchandise within, and attracting and informing customers. The program was reviewed and recommended for adoption by the DBP Board at its March 2020 meeting. However, the DBP Board did not bring the entire program to the Council at the time and instead brought an individual signage application to Council for consideration. Council at its July 13 meeting directed the DBP staff to bring the entire program back for consideration.

The sign program aligns with elements/goals of the DBA Strategic Plan (may be viewed through this link https://downtownbillings.com/about/about-the-dba/), City TIF Policy, MCA and the North 27th Street District Urban Renewal Plan (See table below and attachments) For example, the adopted Urban Renewal Plan for the North 27th Street District, contemplated TIF funding assistance for business retention and recruitment in its Business Programs and Projects section.
 

Item	DBA Strategic Plan	Urban Renewal Plan	City TIF Policy	Montana Code Annotated
Sign fabrication & installation	Strong Downtown Identity – P.15 Vibrant & Connected Downtown – P.15	Business Programs & Projects – P.54 Crime Prevention & Public Safety – P.55	Permitted uses of TIF Funds: Private infrastructure with Public Benefit (building facades) – P.2 Financial Assistance Through TIF – P.2	7-15-4233   7-15-4288

Similar to the CPTED Program, the DBP Board and staff would be able to provide an annual report to the Council on the use and success of this signage program, as well as evaluate the program budget allocation on an annual basis to determine if adjustments are needed. The DBP Board also included in its vote for the program funding that the Board review the program every 6 months to evaluate its use and effectiveness. The uniformity of the application process and the small funding amounts of this program make it ideal for coordination by the DBP after receiving Council approval for the expenditure authority.

 

City Council may:

• Approve of the Downtown Urban Renewal District Sign Incentive Program, or;
• Disapprove of the Downtown Urban Renewal District Sign Incentive Program. Disapproval would be at odds with the Council's action on July 13 to approve a first Sign Incentive Application, and its direction to DBP and City staff to bring the entire program back for formal action.

Approval of up to $30,000 of Urban Renewal funds for this signage program per the DBP Board recommendation will require a budget amendment for FY21. Even with the latest drop in taxable value for the Downtown District, there is adequate revenue in the DBP District Budget to cover this program in FY21.
 
The program is designed to allow up to a maximum of $3,000 per incentive application of TIF funds at a 1:1 match of private funding to sign incentive funding. This means a sign project totaling $4,000 could have up to $2,000 of its cost covered by the program. Funds for any application to this program are payable pending satisfactory submission of all paid invoices showing actual cost incurred for a sign project.